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BERSIN & ASSOCIATES © 2012 BERSIN & ASSOCIATES Research Bulletin | 2012 As we move closer to the 2020 workplace, essential to any organization’s success is the ability to build and execute an integrated talent management strategy. 1 This strategy takes time, necessitates the input and efforts of more than one department, and requires stewardship from leaders across the organization. This research bulletin will demonstrate: The business case for integrated talent management The three-stage process for integrating talent management How other organizations have integrated talent management Bersin & Associates research has shown the strong benefits of integrating talent management practices. For example, organizations with fully integrated processes and systems show 29 percent higher scores in employee engagement, 36 percent higher ratings in leadership development, and 41 percent higher scores in creating a 1 “Integrated talent management” is three or more connected organizational processes designed to attract, manage, develop, motivate, and retain key people. These processes include activities such as performance management, career management, succession management, leadership development, learning and capability development, total rewards, and talent acquisition. These processes are integrated through a common interface, data platform, workflow, and cross-process reporting and analytics. October 19, 2012 BERSIN & ASSOCIATES, LLC 180 GRAND AVENUE SUITE 320 OAKLAND, CA 94612 (510) 251-4400 [email protected] WWW.BERSIN.COM Integrated Talent Management: A Roadmap for Success About the Author Stacia Sherman Garr, Principal Analyst

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BERSIN & ASSOCIATES © 2012

BERSIN & ASSOCIATES

Research Bulletin | 2012

As we move closer to the 2020 workplace, essential to any

organization’s success is the ability to build and execute an

integrated talent management strategy.1 This strategy takes time,

necessitates the input and efforts of more than one department, and

requires stewardship from leaders across the organization.

This research bulletin will demonstrate:

• Thebusinesscaseforintegratedtalentmanagement

• Thethree-stageprocessforintegratingtalentmanagement

• Howotherorganizationshaveintegratedtalentmanagement

Bersin & Associates research has shown the strong benefits of

integrating talent management practices. For example, organizations

with fully integrated processes and systems show 29 percent higher

scores in employee engagement, 36 percent higher ratings in

leadership development, and 41 percent higher scores in creating a

1 “Integrated talent management” is three or more connected organizational processes designed to attract, manage, develop, motivate, and retain key people. These processes include activities such as performance management, career management, succession management, leadership development, learning and capability development, total rewards, and talent acquisition.  These processes are integrated through a common interface,dataplatform,workflow,andcross-processreportingandanalytics.

October 19, 2012

BERSIN & ASSOCIATES, LLC180 GRAND AVENUE

SUITE 320OAKLAND, CA 94612

(510)[email protected]

Integrated Talent Management: A Roadmap for Success

About the Author

Stacia Sherman Garr,Principal Analyst

BERSIN & ASSOCIATES © 2012

BERSIN & ASSOCIATES

Research Bulletin | 2012

BERSIN & ASSOCIATES, LLC6114 LA SALLE AVENUE

SUITE 417OAKLAND, CA 94611

(510)[email protected]

BERSIN & ASSOCIATES

Research Bulletin | 2012

BERSIN & ASSOCIATES © 2012

Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 2

pipeline of viable successors.2 The impact of talent management

practices on employee engagement is especially interesting, as research

shows that a 15 percent improvement in employee engagement can

result in a 2 percent uptick in operating margin.3 Integration may also

have an effect on the bottom line by leading to higher retention of

top performers and thus decreasing recruiting costs, or by allowing the

training department to more precisely budget development initiatives.

Along the path to integrated talent management there are a few

key truths:

• Afoundationalunderstandingofthetypesofjobs,responsibilities,

and competencies your organization needs is necessary to integrate

core talent management functions and processes.

• Integrationmatters.Withatightlyintegratedtalentmanagement

strategy that aligns to the business, organizations are able to thrive.

• Thespecificpathtotalentmanagementmaturitymayvary

dependingontheorganization’simmediateandlong-termneeds,

but the general approach will remain the same.

Importance of Integrated Talent Management

Integrated talent management is more important now than ever

before. Many organizations are facing intense talent shortages resulting

from scarcities in critical skills, accelerating retirements, and increased

turnover. Integrated talent management is important because it

provides the organization with a clearer understanding of its talent,

theabilitytomakeadjustmentstoitscurrentapproachgiventhat

understanding, and the information necessary to plan for the future. An

example of this in action would be an organization that uses integrated

2 For more information, Talent Management Factbook 2010: Best Practices and Benchmarks in U.S. Talent Management, Bersin & Associates/Karen O’Leonard and Stacey Harris,September2010.Availabletoresearchmembersatwww.bersin.com/library or www.bersin.com/tmfactbook.

3 Formoreinformation,“Incentivesvs.Recognition:HowDoYouGetYourWorkersEngaged Again?,” Forbes.com/Eric Mosley, November 19, 2009, http://www.forbes.com/2009/11/19/incentives-recognition-engagement-leadership-ceonetwork-employees_print.html.

BERSIN & ASSOCIATES © 2012

BERSIN & ASSOCIATES

Research Bulletin | 2012

BERSIN & ASSOCIATES, LLC6114 LA SALLE AVENUE

SUITE 417OAKLAND, CA 94611

(510)[email protected]

BERSIN & ASSOCIATES

Research Bulletin | 2012

BERSIN & ASSOCIATES © 2012

Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 3

talentmanagementtoidentifyitsmost-neededskills,determineshow

many more people with those skills are necessary, recruits for those

people (externally or internally), and develops a targeted plan for

retaining current employees who possess those skills. The globalization

of the workplace also increases the need for connectivity between

processes such as career management and learning and development. If

global career paths are tightly knitted with a learning and development

strategy, the organization can improve the success rate of expatriate

assignments and other leadership development initiatives, resulting

inbetter-preparedleadersandthemoreefficientuseoftalent

management investments. Integrated talent management fuses human

resources processes together at the right places, leading to tangible

benefits for the organization.

Benefits

The goal of an integrated talent management strategy is to create a

highlyresponsive,high-performance,sustainableorganizationthat

meets business targets, both today and tomorrow. Currently, only

7 percent of organizations have established a truly mature strategy

while many more, 44 percent, are developing a strategy with mature

processes.4 Our research shows that making the investment in improving

integrated talent management pays off, as the organizations with the

most mature processes achieve superior results:

• 26percenthigherrevenueperemployee

• 28percentlesslikelytohavedownsizedfrom2008to2009

• 40percentlowerturnoveramonghighperformers

• 17percentloweroverallvoluntaryturnover

• 87percentgreaterabilityto“hirethebestpeople”

• 156percentgreaterabilityto“developgreatleaders”

4 This information is based on our current research on the topic of Learning and Integrated Talent Management, the report for which is due to be published in Q4’2012. Please see our ongoing research in this area by visiting www.bersin.com/library.

Integrated talent

management fuses

human resources

processes together

at the right places,

leading to tangible

benefits for the

organization.

KEY POINT

BERSIN & ASSOCIATES © 2012

BERSIN & ASSOCIATES

Research Bulletin | 2012

BERSIN & ASSOCIATES, LLC6114 LA SALLE AVENUE

SUITE 417OAKLAND, CA 94611

(510)[email protected]

BERSIN & ASSOCIATES

Research Bulletin | 2012

BERSIN & ASSOCIATES © 2012

Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 4

• 92percentgreaterabilityto“respondtochanging

economic conditions”

• 144percentgreaterabilityto“planforfutureworkforceneeds”5

Levels of Talent Management Integration Maturity

Most organizations today have not achieved total talent management

integration. In 2010, almost half of U.S. companies said that they

hadawell-definedtalentstrategyand,atthattime,wereworking

to implement that strategy. Two years later, organizations are still

working to effectively implement their strategies. For example, only 4

out of 10 respondents to a survey by Towers Watson reported effective

incorporation of competencies into the performance management

process–anecessarybaselineforunderstandinghowwellajobisbeing

performed.6 Furthermore, only 37 percent of respondents reported that

their organizations are adept at incorporating career development into

the performance management process.7

The path to integration can be difficult and time consuming. To help

organizations understand what this process looks like, we developed

our Bersin & Associates Talent Management Maturity Model (see Figure

1). This model describes the levels through which most organizations

move on their path to integrated talent management.

5 For more information, Creating Agility Through Integrated People Management Process, Bersin & Associates/Katherine Jones, Ph.D., July 2012. Available to research members at www.bersin.com/library.

6 For more information, The Next High-Stakes Quest: Balancing Employer and Employee Priorities, 2012–2013 Global Talent Management and Rewards Study, Towers Watson, 2012, http://www.towerswatson.com/assets/pdf/7990/TowersWatson-GlobalTMR-Survey-NA-2012(1).pdf. This survey reviewed 1,605 employers across four global regions.

7 Ibid.

Only 4 out of 10

survey respondents

reported effective

incorporation of

competencies into

the performance

management

process – a

necessary baseline

for understanding

howwellajobis

being performed.

KEY POINT

BERSIN & ASSOCIATES © 2012

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Research Bulletin | 2012

BERSIN & ASSOCIATES, LLC6114 LA SALLE AVENUE

SUITE 417OAKLAND, CA 94611

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BERSIN & ASSOCIATES

Research Bulletin | 2012

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Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 5

Each level, as illustrated in the model, indicates how far an organization

has traveled on the path to integration. At Level 1, organizations

have yet to explore connecting talent processes or systems, whereas at

Level 2, talent management integration has been embraced, but with

room to determine more connection points. Levels 3 and 4 represent

the upper end of maturity with a talent management strategy that is

aligned with the goals of the business and with technology in place to

support collaboration across processes.

Some organizational demographic features can impact the likelihood

of an organization being more or less mature. For example, older

organizations are unlikely to be at the lowest level of maturity (though

few of them have made it to the highest level of maturity).8 It makes

sense that many of these organizations have moved beyond Level 1

8 For more information, Talent Management Factbook 2010: Best Practices and Benchmarks in U.S. Talent Management, Bersin & Associates/Karen O’Leonard and Stacey Harris,September2010.Availabletoresearchmembersatwww.bersin.com/library or www.bersin.com/tmfactbook.

Source: Bersin & Associates, 2010.

Figure 1: Bersin & Associates Talent Management Maturity Model®

Level 4: Strategic Talent ManagementFully integrated processes and systems used to make

business decisions; talent management is business-driven

Level 3: Integrated Talent ManagementHeavy focus on connecting systems and processes;single person / team responsible for talent initiatives

Level 2: Standardized Talent ProcessesTalent processes are consistent and tailorable, with some integration;

several systems connected through manual processes

Level 1: Siloed HR ProcessesIndividual HR processes or “silos”;

may have systems in place but not connected

Regardless of the

size or industry, all

business entities

recognize the

benefits of an

integrated talent

management

strategy as their

operations increase

in scope and

complexity.

KEY POINT

BERSIN & ASSOCIATES © 2012

BERSIN & ASSOCIATES

Research Bulletin | 2012

BERSIN & ASSOCIATES, LLC6114 LA SALLE AVENUE

SUITE 417OAKLAND, CA 94611

(510)[email protected]

BERSIN & ASSOCIATES

Research Bulletin | 2012

BERSIN & ASSOCIATES © 2012

Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 6

maturity because integration is typically a phased process across multiple

years.Youngerorganizations,orthoseinindustriesslowertoadaptto

new trends (e.g., manufacturing), find themselves primarily at Level 1 or

Level 2. The younger organizations may initially place emphasis on other

aspectsofthebusiness,suchasproductdevelopment.However,asthese

organizations grow, they will recognize the benefits of integrated talent

management and allocate resources toward building a strategy in the

future. Regardless of the size or industry, all business entities recognize

the benefits of an integrated talent management strategy as their

operations increase in scope and complexity.

There are clear business advantages for organizations at the highest

level of the maturity ladder. Bersin & Associates research shows that

companies with standardized talent processes, residing at Level 2,

have double the turnover of high performers9 when compared to

companiesatLevel4,whichpossessmorestrategic,business-driven

talent management.10

Where to Start: The Foundation of Integrated Talent Management

What is the first step to moving an organization toward an integrated

talent management strategy? Although it may appear that aligning

processes is the best place to begin, the foundation of integrated talent

management is actually getting the right people on board to establish

and then execute the strategy.

Integrating talent management requires that senior leaders understand

and support integration efforts and that business leaders throughout

theenterprise(withsupportfromHR)implementandownmanyof

9 A “high performer” is an employee who is a key contributor, demonstrates high performance, is capable of a lateral move, may be qualified for a broader role within the same profession, and has reached the potential to move “upward” in a management capacity.

10 For more information, Talent Management Factbook 2010: Best Practices and Benchmarks in U.S. Talent Management, Bersin & Associates/Karen O’Leonard and Stacey Harris,September2010.Availabletoresearchmembersatwww.bersin.com/library or www.bersin.com/tmfactbook.

Integrating talent

management

requires that senior

leaders understand

and support

integration efforts

and that business

leaders throughout

the enterprise, with

supportfromHR,

implement and

own many of those

changes.

KEY POINT

BERSIN & ASSOCIATES © 2012

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Research Bulletin | 2012

BERSIN & ASSOCIATES, LLC6114 LA SALLE AVENUE

SUITE 417OAKLAND, CA 94611

(510)[email protected]

BERSIN & ASSOCIATES

Research Bulletin | 2012

BERSIN & ASSOCIATES © 2012

Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 7

those changes.11 The best place to start for any organization trying

to improve its talent management integration is fostering executive

sponsorship, engaging business leaders, and aligning the right

employees to make planning collaborative.12 Involving leadership early

instrategydevelopmentengagesthemintheprocessandimprovesbuy-

in. Inviting both leaders and departmental employees to initial working

sessions and kickoff meetings is one way to encourage participation.

The business leaders driving the changes should also be responsible

for identifying resources across the business that can support the

integration of talent management.

A Talent Management Integration Roadmap

Withbroadsupport,HRcannowfocusonintegratingtalent

management. In Figure 2, we outlined a phased approach for

doing this:

11 For more information, The High-Impact Learning Organization: WhatWorks® in the Management, Governance and Operations of Modern Corporate Training, Bersin & Associates/Josh Bersin, May 2008. Available to research members at www.bersin.com/library or for purchase at www.bersin.com/highimpact.

12 For more information, Creating Business Alignment: The Role of Talent Advisory Councils, Bersin & Associates/Stacia Sherman Garr, September 2011. Available to research members at www.bersin.com/library.

Source: Bersin & Associates, 2012.

Figure 2: Phased Approach to Integrating Talent Management

1. Succession Management

2. Talent Acquisition

1. Learning & Development

2. Leadership & Capability Development

3. Career Development

1. Job/Competencies Definition

2. Total Rewards

3. Performance Management

Development Integration

Talent Pipeline Integration

Foundational Integration

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Research Bulletin | 2012

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Research Bulletin | 2012

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Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 8

Foundational Integration

The first step in integrated talent management includes three

elements: ensuring that everyone understands the responsibilities and

behaviors required by the organization, determining how people will

be incentivized to stay in those positions, and identifying how those

employees will be assessed. These elements all fit under what we call

“foundational integration.”

As part of the foundation (see Figure 3), an organization may

begin with an analysis of the talent infrastructure. This includes

jobarchitecture(alsoknownasa“careerframework”atsome

organizations) and role definitions. To do this, many organizations

define the roles at each level within the organizational hierarchy and

howreportingstructuresalign.Next,HRdetermineshowjobsaregoing

toworktogether.Thismayleadtoaddingdetailtojobprofilesand

identifyingwhichjobsreporttoothers.Jobprofilestypicallyincludethe

required skills, competencies, certifications, work experience, and other

attributes required for success in a particular role. The process might

take a while because other tasks may also be necessary, such as plotting

andweightingjobsbasedontheirrelativeimportanceandcontribution

to organizational success.

The first step in

integrated talent

management

includes three

elements:

ensuring that

everyone

understands the

responsibilities

and behaviors

required by the

organization,

determining

how people will

be incentivized

to stay in those

positions, and

identifying how

those employees

will be assessed.

These elements all

fit under what we

call “foundational

integration.”

KEY POINT

Talent Infrastructure

Competency Management

Source: Bersin & Associates, 2012.

Figure 3: Core Elements of Foundational Integration

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Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 9

Many organizations will also focus on developing or refining

competencies at this point. Competencies are used to identify the

behaviorsnecessarytoexecutejobrequirements,establishcriteriafor

evaluating performance, and identify areas for improvement. Nearly

two-thirdsoforganizationsfindthatcompetenciesserveasasolid

foundation on which to begin integration, and many organizations

usethemtohelpwithjobleveling.13Forexample,joblevelingmay

involverankingjobsintotiersorbandsthatrepresentresponsibilities

with regard to management or individual contribution. Skills and

competencies will later feed directly into other talent processes such as

performance management, learning, and career management. As such,

identifying competencies early is critical.

Many organizations next shift their focus to total rewards14 and

performance management (see Figure 4), with the intention of clearly

mappingobjectivesandrewardsbacktotheoveralltalentmanagement

strategy.15Usingthejobdefinitionsandprofilesidentifiedinthe

foundational section of the talent management integration roadmap,

market analysis should surface data to support salary and incentive

decisions for most, if not all, roles. The effective use of the results

from the market analysis is key to determining the right total rewards

package. Many organizations find it beneficial to use an integrated

marketanalysisandjobpricingtoolanddatabaseatthisstagesothat

they can most effectively map particular roles to compensation.

13 For more information, Talent Management Factbook 2010: Best Practices and Benchmarks in U.S. Talent Management, Bersin & Associates/Karen O’Leonard and Stacey Harris,September2010.Availabletoresearchmembersatwww.bersin.com/library or www.bersin.com/tmfactbook.

14 “Total rewards” includes incentives, compensation, and benefits.

15 For more information, The Next High-Stakes Quest: Balancing Employer and Employee Priorities, 2012–2013 Global Talent Management and Rewards Study, Towers Watson, 2012, http://www.towerswatson.com/assets/pdf/7990/TowersWatson-GlobalTMR-Survey-NA-2012(1).pdf. This survey reviewed 1,605 employers across four global regions.

Nearlytwo-thirds

of organizations

find that

competencies

serve as a solid

foundation on

which to begin

integration, and

many organizations

use them to help

withjobleveling.

KEY POINT

BERSIN & ASSOCIATES © 2012

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Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 10

In parallel, or following the integration of a total rewards approach,

isabuild-outofaneffectiveperformancemanagementprocess.Total

rewards and performance management connect naturally because

many elements of total rewards, such as bonuses or incentives, are

often aligned with ratings and reviews from the performance appraisal

process. Performance management will later integrate with other

processes such as learning, talent acquisition, leadership development,

and career management. (See Figure 4.)

Source: Bersin & Associates, 2010.

Figure 4: Integrated Talent Management

Total rewards

and performance

management

connect naturally

because many

elements of total

rewards, such

as bonuses or

incentives, are

often aligned

with ratings and

reviews from

the performance

appraisal process.

KEY POINT

Talent Acquisition

Career Management

Succession Management

LeadershipDevelopment

Learning & CapabilityDevelopment

Talent Infrastructure

Total Rewards

CompetencyManagement

Performance Management

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Research Bulletin | 2012

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Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 11

Case in Point: ACTIVE Network, Inc., Tackles Integrated Talent Management for a Rapidly Growing and Diverse Workforce

With 25 acquisitions in the past five years, 35 offices in eight

countries, 4,000 employees, and a recent initial public offering,

ACTIVE Network, Inc., is familiar with making rapid changes in a

geographically and generationally diverse organization. ACTIVE,

founded in 1998 and headquartered in San Diego, California,

seeks to “make the world a more active place” by building the

technology that powers the world’s activities.

Rapid Business Growth Exposes Talent Management Challenges

In parallel with its explosive business growth, ACTIVE began

to experience increasingly visible challenges related to its

talent management processes and procedures. Some of those

issues included:

• 1,700differentjobtitlesfor2,500employees

• Undefinedcareerpaths

• Inconsistentsalaryandrewardsstructure,whichwasnot

tied to performance

• Complicatedperformancemanagementprocess,

in which employees were rated on more than 20

separate competencies

• Disparatepaperandtechnologysystems

Gaining the Support of Leadership

Toaddressthesechallenges,ACTIVElaunchedathree-phase

approach to integrated talent management that will help

the company align processes and, ultimately, engage, grow,

and retain top talent. The company took this approach based

on feedback from employee engagement surveys and an

analysis completed by an employee task force, which included

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Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 12

20 top performers from across the organization. Working

collaborativelywithHR,thetaskforcedevelopedabusiness

casethatwaspresentedtotheC-Suiteforinput,buy-in,anda

commitment to invest in proposed initiatives. John Martinez,

ACTIVE’s director of total rewards, stated, “We have great

supporthere,fromC-Suitetoseniorleadershiptoemployees.”

The leadership team agreed to a progressive move toward

integrated talent management that will involve new systems

and processes through 2013.

A Solid Foundation and Initial Integration Points

The foundation of the phased approach, which began in 2011,

wastorationalizethejobtitlesintheorganization.During

this phase, ACTIVE identified the responsibilities and skills

requiredfordifferentjobs,distinguishingbetweentechnicaland

nontechnical roles. The first year was entirely focused on this

process of rationalizing titles and compensation. Through this

process,ACTIVEwasabletoreduce1,700jobtitlesto800.The

company also instituted a formal process for determining how

new roles would be integrated into the existing set. ACTIVE then

leveraged a team, which included top performers, to identify

the traits necessary to be successful and codified them as the

organization’s competencies.

With competencies established, total rewards was selected

as an initial integration point for ACTIVE. In early 2012,

ACTIVEestablishedamarket-basedpaystructurethatfitthe

organization’s geographic diversity and took into account

multipletiersandjobtypes,distinguishingbetweentechnical

and nontechnical career tracks. ACTIVE also restructured

performance management to focus employees on three to

five goals (down from as many as 20) and aligned pay with

performance. Martinez explained, “The parallel process was

coupling pay decisions with performance. In the past, merit

increases occurred in July, and appraisals were held in March.

Case in Point: ACTIVE Network, Inc. (cont’d)

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Research Bulletin | 2012

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Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 13

There was a disconnect in timing. People instead want us to tell

them how they are doing and then immediately reward them.

Coupling pay decisions with performance was a huge win.”

What Is Next?

By the end of 2012, ACTIVE will have launched its new career

path portal and supporting career management processes.

The system will enable employees and managers much better

transparency into employees’ skills and competencies, as well as

the required skills and competencies for future roles.

By2013,ACTIVEplanstohavejobsclearlydefined,acomplete

competency model, and a total rewards strategy mapped to

performance.ACTIVEthenexpectstocompleteitsthree-phase

approach by aligning its training and development programs

and systems with the career and reward processes. e

Development Integration

Oncecompetencymodelsandjobsareestablished,alongwith

compensation and performance management processes, the

organization can focus on how employees will develop within the

organization.Specifically,HRshouldidentifythedesiredcareerpaths16

within the organization and the learning necessary to ensure that

employees can follow those paths (see Figure 5).

The order in which an organization chooses to address career

management, learning, and leadership development may vary.

However,becauseallthreeprocesseshavenaturalsynergiesamong

them, they should be analyzed and planned for together. For example,

an organization could focus first on defining career paths, given the

jobresponsibilitiesandcompetenciesalreadydeveloped.Thisenables

employees to see the potential directions they can move within the

16 “Careerpath”referstoaplanned,logicalprogressionofjobsthatmayincludelateraland vertical movement within an organization.

Case in Point: ACTIVE Network, Inc. (cont’d)

The order in which

an organization

chooses to

address career

management,

learning, and

leadership

development may

vary.However,

because all three

processes have

natural synergies

among them, they

should be analyzed

and planned for

together.

KEY POINT

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Research Bulletin | 2012

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Integrated Talent Management: A Roadmap for Success Stacia Sherman Garr | Page 14

organization, understand the competencies and skills necessary to

performthejobsunderconsideration,anddevelopaplanforgetting

there. To help employees with these efforts, the organization also needs

to create the learning and leadership development support necessary

for moving along those various paths.

Alternatively,theorganizationcouldconductagapanalysisoflow-

andhigh-performingemployeeswithinvariousroles(basedondata

from performance appraisals and other assessments), create learning

and leadership development resources to address those gaps, and

then determine potential career paths. In 2010, slightly more than 40

percent of organizations reported that their performance management,

learning, and career management processes were linked in this way.17

Regardless of the approach an organization takes, it should involve

looking at these three elements together.

17 For more information, Talent Management Factbook 2010: Best Practices and Benchmarks in U.S. Talent Management, Bersin & Associates/Karen O’Leonard and Stacey Harris,September2010.Availabletoresearchmembersatwww.bersin.com/library or www.bersin.com/tmfactbook.

Source: Bersin & Associates, 2010.

Figure 5: Integrated Talent Management

Talent Acquisition

Career Management

Succession Management

LeadershipDevelopment

Learning & CapabilityDevelopment

Talent Infrastructure

Total Rewards

CompetencyManagement

Performance Management

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Talent Pipeline Integration

The final areas to integrate are succession management and talent

acquisition (see Figure 6).

Succession management and talent acquisition integrate tightly with

many of the talent management elements already discussed, as shown

in Figure 6. For example, talent readiness (a critical part of succession

management) depends on the leadership development, learning,

and performance management resources in place. Recruiting and

hiring initiatives should be closely aligned with assessment results

(from leadership development, learning, or career management)

and outcomes from the performance appraisal process. Furthermore,

recruiting should be explicitly linked to career management resources so

that current employees can learn when a position they were considering

becomes available. A strong talent pipeline must be enabled

internally through succession planning and externally through talent

acquisition activities.

Source: Bersin & Associates, 2010.

Figure 6: Integrated Talent Management

Talent Acquisition

Career Management

Succession Management

LeadershipDevelopment

Learning & CapabilityDevelopment

Talent Infrastructure

Total Rewards

CompetencyManagement

Performance Management

A strong talent

pipeline must be

enabled internally

through succession

planning and

externally through

talent acquisition

activities.

KEY POINT

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Case in Point: Equifax Expands Career Paths to Increase Talent Mobility and Retention While Enabling Succession Planning

Since 2006, Equifax has experienced rapid growth around the

globe.The$2-billion,106-year-old,internationalfinancial

servicescompanyisoneofthethreemajorcreditbureausin

the United States. Through the use of its unique data assets,

Equifax offers an analytical solution to support its customers’

varied needs.

Rapid expansion often comes with challenges, though, and

forEquifaxthatmeantanexcessivenumberofjobtitlesand

levels.Acrosstheorganization,joblevelsandcareerpathswere

unclear, resulting in an urgent need for a more integrated

view of both business and people processes. Multiple systems,

including 25 different performance management solutions, also

prohibited Equifax from having a holistic view of performance

and top talent in the organization.

Defining Competencies and Streamlining Job Levels

First on the agenda for Equifax was to move to a banded

organization, where roles were aligned and comparable

work was made clearer. To create greater simplicity, Equifax

established an initiative known as Connections to look at

commonworkacrosstheglobe.ChiefHROfficer(CHRO)

CorethaRushingstated,“Thiswasnotjustaboutstructure,it

was also about giving us a better understanding of the talent

we have and creating clarity around career options for our

employees.Weweretryingtounderstandthecommonjobsand

feeder roles necessary to get to the next level. It’s our operating

system for managing talent globally to best support Equifax’s

futuregrowthobjectives.”Asapartofthiswork,Equifax

identified six core competency areas that could be scaled for

differentjobsandacrosstheenterprise:

CHROCoretha

Rushing stated,

“Thiswasnotjust

about structure,

it was also about

giving us a better

understanding

of the talent we

have and creating

clarity around

career options for

our employees.

We were trying

to understand

thecommonjobs

and feeder roles

necessary to get

to the next level.

It’s our operating

system for

managing talent

globally to best

support Equifax’s

future growth

objectives.”

KEY POINT

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• BusinessKnowledge

• ProblemSolvingandDecisionMaking

• CustomerValueCreation

• Influence

• Execution

• TalentDevelopment

Equifax focused efforts on the sales organization initially,

soliciting support from business unit management working

closelywithHR.Rushingshared,“Thisworknecessitatedgetting

sales leaders involved in the process, as they have the most

intimate understanding of the roles and the competencies

required.Havingmanagementinvolvedincreasedthelengthof

theproject,butinstilledownership.Wewantedtomakesure

theyunderstoodthiswasabusinessissueandthatHR’srolewas

tofacilitatetheprocess.”Equifaxalsoimplementedasoftware-

as-a-servicetechnologytostorethenewlydefinedbandedroles

andHRdatarelatedtotalentwithintheorganization.Thisnew

technologyalsoenabledself-service.

Better Career Paths

A critical element of this work was defining which competencies

werenecessaryforeachjobandhowthosecompetencies

evolved from position to position. This provided a natural

framework for creating clear career paths. As a result of this

work, career paths for the sales force have become clearer,

and professionals can now move around the organization

more efficiently.

Equifax is already seeing the competencies improve internal

talent mobility. For example, hiring managers can now clearly

articulate the core competencies needed for success within

a role. This enables the hiring manager to more effectively

advertise the position internally, as well as externally. As a result

Case in Point: Equifax Expands Career Paths (cont’d)

CHRORushing

stated,“Having

management

involved increased

the length of

theproject,

but instilled

ownership.”

KEY POINT

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of this clearer communication, employees are more apt to find

positions that fit with their career goals. Rushing stated, “I think

people,evenwhentheyarereallygoodattheirjobs,oftenwill

leaveandgotoanothercompanyforarole,evenifthatjob

exists at their current company. The problem could be that they

justweren’tawareoftheavailabilityofthatopportunity.We’re

trying to fix that here, and having some real success.”

Next Steps and Desired Outcomes

The Connections initiative was a success within sales, and now

Equifax is looking to extend it. The organization plans to both

roll out Connections more broadly and embed the newly defined

and mapped competencies into leadership development, talent

acquisition, and succession management processes.

Over the next three to five years, Equifax expects to see the

following additional benefits:

• Increasedretentionthroughouttheorganization

• Improvedperformancemanagementagainstadefined

set of competencies

• Increasedtalentmobilityandclearinternaltalentpoolsfor

succession management

• Enhancedpredictivecapabilitiesforworkforceplanninge

Starting in the Middle of the Roadmap

We are often asked if it is possible to start in the middle of this

roadmap. Although it certainly is feasible to begin somewhere in the

middleandbesuccessful,therearetrade-offs.Forexample,themost

critical, foundational component of the roadmap is the establishment

ofjobresponsibilitiesandcompetencies.Thisisimportantbecausethese

elements affect how people are compensated and incentivized (total

rewards), how they are managed and assessed (performance

Case in Point: Equifax Expands Career Paths (cont’d)

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management), how people can move through the organization (career

management and succession management), and how learning is

designed to support performance improvement (learning and leadership

development). If those initial foundational elements are missing, then the

rest of the organization’s structures are prone to inconsistency.

Some organizations have succeeded by focusing on integrating talent

management for only a subsection of roles. In these instances, they

define responsibilities and competencies for critical roles, and then

focus on integrating the other processes. This can be an effective way to

both address a specific area of need and pilot an integration approach.

Still other organizations may have different needs, such as integrating

two processes that are further along in the roadmap (e.g., leadership

development and succession management). For these organizations,

although it is certainly desirable to have consistency between

leadership development offerings and the factors used to determine

succession moves, it is also important that these elements align with the

competenciesandjobresponsibilitiesoftherolesintowhichpeoplewill

be moved. If the organization lacks that consistency, the relevance of

both the leadership development and succession management processes

can be called into question.

Finally, it is important that an organization, regardless of which

processes it is focused on integrating, engage senior leaders early and

often.Withoutseniorleaderbuy-in,itisextremelydifficulttoalignand

integrate the various talent management processes.

Using Technology to Enable Integration

Talent management technology suites are designed to enable an

organization’s overall talent strategy. Our research shows that

companies with poorly integrated systems have low scores on retention

and employee productivity, similar to organizations that have no

systems in place at all.18 Merely attempting to automate old, disparate

18 For more information, Talent Management Factbook 2010: Best Practices and Benchmarks in U.S. Talent Management, Bersin & Associates/Karen O’Leonard and Stacey Harris,September2010.Availabletoresearchmembersatwww.bersin.com/library or www.bersin.com/tmfactbook.

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processes within a new technology system does not yield new results.

Organizations must take the time to select the right technology

solutions, as well as determine the right combination of process

steps, that will allow the technology to enhance the overall talent

management strategy. Many organizations already understand this.

For example, a recent survey from Towers Watson showed that over

thepastsixyears,technologywasaprimaryfocalpointforHRservices

and operations functions in their quest to improve overall delivery of

performance and talent management.19

One important decision factor for an organization is how to implement

technology. A phased approach is often best for two reasons. First, it

allows the organization to develop its capabilities so that they build

on each other, similar to how we outlined the process in the talent

management integration roadmap. Second, it allows the organization

to digest change at an acceptable rate. For example, the organization

will likely want to use pilots to test the feasibility of newly designed

conceptsandprocesses,andthenensurethattheyhavebuy-infromkey

players before completing the integration.

Technology solutions to support the foundational integration processes,

including talent infrastructure and competency management, will

be most essential at the onset. This may be followed by a phased

implementation of other offerings in the suite as additional steps are

takentointegratedevelopment-andtalentpipeline–relatedprocesses.

SomeorganizationswilllooktoonesystemproviderfortheirHR

technology solution. In 2010, 34 percent of organizations were

planning to implement a talent management suite from one vendor.20

However,a“one-stopshop”isnottheonlyanswertoHRtechnology

needs.Twenty-twopercentoforganizationsin2010indicatedthat

19 For more information, The Next High-Stakes Quest: Balancing Employer and Employee Priorities, 2012–2013 Global Talent Management and Rewards Study, Towers Watson, 2012, http://www.towerswatson.com/assets/pdf/7990/TowersWatson-GlobalTMR-Survey-NA-2012(1).pdf. This survey reviewed 1,605 employers across four global regions.

20 For more information, Talent Management Factbook 2010: Best Practices and Benchmarks in U.S. Talent Management, Bersin & Associates/Karen O’Leonard and Stacey Harris,September2010.Availabletoresearchmembersatwww.bersin.com/library or www.bersin.com/tmfactbook.

Attempting to

automate old,

disparate processes

within a new

technology system

will not yield new

results.

KEY POINT

A phased approach

to implementing

technology is

most feasible

because it enables

the organization

sufficient time to

both build on its

capabilities and

digest change.

KEY POINT

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they will implement a partial suite.21 This means that if systems are

already in place, they will seek to integrate legacy systems with newer

systems, many of which will be based in the cloud. Or they may seek to

partner with a few vendors that have technology offerings capable of

integrating or sharing data with other solutions.

The key to replacing, integrating, or adding new technology is putting

inplaceasolidteamtomakesolution-relateddecisions.22 The teams

most effective at integrating talent management do a number of

thingsdifferently.First,theyincludevariedstakeholders(HR,IT,and

the business) who are knowledgeable about their respective areas and

also dedicated to the task at hand. Many of these teams will also bring

in external consultants to provide additional expertise and insights

around designing processes and policies, leveraging the technology, and

managing change.

One of the first items on the agenda for these teams is developing a

definitive strategy that will connect the different elements of talent

management at the right places. The team also needs to create clear

processes to support the new strategy and understand how those

changes can be translated into the online system. Finally, the team

must roll out an effective change management initiative to ensure

that everyone within the organization understands the new approach

and is prepared to implement it. If an organization can execute these

activities effectively and in a timely fashion, then it is much more

likely to succeed at integrating talent management and leveraging

technology appropriately.

21 For more information, Talent Management Factbook 2010: Best Practices and Benchmarks in U.S. Talent Management, Bersin & Associates/Karen O’Leonard and Stacey Harris,September2010.Availabletoresearchmembersatwww.bersin.com/library or www.bersin.com/tmfactbook.

22 Ibid.

Many of these

teams will also

bring in external

consultants to

provide additional

expertise and

insights around

designing processes

and policies,

leveraging the

technology, and

managing change.

KEY POINT

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Conclusion

The most successful organizations rely on a talent infrastructure that

encompassestherightcompetenciesandjobprofilesasabasisfor

integration. When this foundation is set, it is much easier to integrate

the different elements of total rewards, performance management,

learning, leadership development, career management, talent

acquisition, and succession planning. As an organization increases

the integration of its talent management processes, it increases its

level of talent management maturity. Talent management maturity

will not be achieved overnight and takes the involvement of business

leaders and multiple departments, as well as the appropriate use of an

integrated talent management suite. The roadmap to integrated talent

management may vary from organization to organization. As we have

presented here, one proven pathway is to progress from foundational

to development integration and, finally, to talent pipeline integration.

Technology is not the sole ingredient for achieving integrated talent

management success. When viewed as an enabler that works in concert

with strong teams and effective processes, technology will enhance the

ability of the organization to maximize the benefits of the overall talent

management strategy.

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